Evans and Kemper Auto President Matt Hunton framed California as the largest challenge. Evans pointed to structural changes in that market, including the state’s increase in minimum liability limits last year—the first increase since 1967—where bodily injury limits doubled and property damage limits tripled. He said that, combined with social inflation and legal system abuse, made loss cost predictability more difficult.Camden said policies in force and written premium fell 7.3% and 9.3% year over year, res ...

Kemper (KMPR) came out with quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.85 per share. This compares to earnings of $1.78 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -70.67%. A quarter ago, it was expected that this insurance holding company would post earnings of $1.33 per share when it actually produced earnings of $0.33, delivering a surprise of -75.19%.Over the last four quarters, t ...

Investor Supplement Fourth Quarter 2025 Caution Regarding Forward-Looking Statements This Investor Supplement may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Such statements involve known and unknown ris ...

About Kemper CHICAGO--(BUSINESS WIRE)--Kemper Corporation (NYSE: KMPR) announced today that its Board of Directors has declared a quarterly dividend of $0.32 per share. The dividend is payable on March 3, 2026, to Kemper's shareholders of record as of February 17, 2026. The Kemper family of companies is one of the nation's leading specialized insurers. With approximately $12 billion in assets, Kemper is improving the world of insurance by providing affordable and easy-to-use personalized solutions to indivi ...

Core Insights - The author possesses a strong academic background in economics and politics, emphasizing economic development, and has 36 years of executive management experience in the insurance and reinsurance sectors, particularly in Global and Asia Pacific markets, as well as expertise in climate change and ESG [1]. Group 1 - The author has extensive knowledge in the insurance and reinsurance industries, which is critical for understanding market dynamics and investment opportunities [1]. - The focus on climate change and ESG indicates a growing trend in investment strategies that prioritize sustainability and environmental responsibility [1].

Core Insights - Kemper experienced a significant decline in stock value, with shares dropping over 14% following its latest earnings release, contrasting sharply with the S&P 500's 1.1% dip [1] Financial Performance - The company reported total revenue of nearly $1.24 billion for the third quarter, marking a 5% increase compared to the same period in 2024, primarily driven by a 6% rise in earned premiums to $1.13 billion [2] - However, Kemper's net operating income, not in accordance with GAAP, fell dramatically to $20.4 million ($0.33 per share) from $105 million in the previous year, significantly missing the consensus analyst estimate of $1.33 per share [3] Challenges - The decline in profitability was mainly attributed to the specialty property and casualty line, which suffered from higher adverse prior year developments on bodily injury coverages within commercial automobile insurance, despite some offset from growth in earned premiums due to rate increases [4][5]

Core Insights - Kemper's shares fell 15.6% after disappointing Q3 2025 financial results, with adjusted earnings of $0.33 per share missing expectations of $1.32 by 75% [1] - The company's combined ratio was 99.6%, significantly worse than the projected 94.7%, indicating poor underwriting performance [1] - Although revenue expectations were met, Kemper fell short on book value per share, raising investor concerns [1] Financial Performance - Kemper's adjusted earnings for Q3 2025 were $0.33 per share, missing Wall Street expectations by 75% [1] - The combined ratio of 99.6% indicates that total underwriting costs and claims exceeded premiums earned, with a figure below 100% typically indicating profitability [1] - The company's performance deteriorated compared to the same quarter last year [1] Stock Market Reaction - The stock experienced a significant drop, marking one of the rare instances of volatility for Kemper, which has only had four moves greater than 5% in the past year [3] - The previous notable drop occurred 22 days prior, when the CEO announced his immediate resignation, which affected investor confidence [4] Year-to-Date Performance - Kemper's stock is down 44% since the beginning of the year, trading at $36.62 per share, which is 49.2% below its 52-week high of $72.10 from November 2024 [5] - An investment of $1,000 in Kemper's shares five years ago would now be worth $564.93 [5]

Core Viewpoint - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues, particularly when ad-blockers are enabled [1] Group 1 - The article suggests that users may face restrictions if they have ad-blockers enabled, indicating a need for adjustments in browser settings to ensure smooth access [1]

Earnings Performance - Kemper reported quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $1.33 per share, and down from $1.62 per share a year ago, representing an earnings surprise of -75.19% [1] - The company posted revenues of $1.24 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.79%, compared to year-ago revenues of $1.18 billion [2] Stock Performance - Kemper shares have lost about 34.2% since the beginning of the year, while the S&P 500 has gained 15.1% [3] - The current Zacks Rank for Kemper is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $1.23 on $1.23 billion in revenues, and $5.56 on $4.86 billion in revenues for the current fiscal year [7] - The outlook for the industry, specifically the Insurance - Multi line sector, is currently in the top 28% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] Industry Context - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - Oscar Health, Inc., another company in the same industry, is expected to report a quarterly loss of $0.55 per share, with revenues projected to be $3.09 billion, up 27.5% from the year-ago quarter [9][10]

Financial Performance - Total revenues for the three months ended September 30, 2025, were $1,239.7 million, an increase from $1,178.9 million for the same period in 2024, representing a growth of 5.2%[23] - Earned premiums for the nine months ended September 30, 2025, reached $3,352.0 million, compared to $3,134.1 million for the same period in 2024, reflecting a year-over-year increase of 7.0%[23] - Net (loss) income attributable to Kemper Corporation for the three months ended September 30, 2025, was $(21.0) million, a decrease from $73.7 million in the same period of 2024[23] - For the three months ended September 30, 2025, Kemper Corporation reported a net loss of $24.2 million, compared to a net income of $72.2 million for the same period in 2024[24] - Total comprehensive income for the nine months ended September 30, 2025, was $220.3 million, down from $325.1 million in the same period of 2024[24] - For the nine months ended September 30, 2025, the net income was $142.6 million, a decrease from $216.8 million for the same period in 2024, reflecting a decline of approximately 34.2%[39] Expenses and Losses - Total expenses for the three months ended September 30, 2025, were $1,272.8 million, compared to $1,088.2 million for the same period in 2024, marking an increase of 16.9%[23] - Policyholders' benefits and incurred losses and loss adjustment expenses for the three months ended September 30, 2025, were $924.6 million, up from $769.3 million in the same period of 2024, indicating a rise of 20.2%[23] - The company reported a net investment income of $104.8 million for the three months ended September 30, 2025, down from $111.1 million in the same period of 2024, a decline of 5.0%[23] - The company experienced a remeasurement loss related to the deferred profit liability within the Life insurance business of $0.9 million for the three months ended September 30, 2025[23] Assets and Liabilities - The company's total assets decreased to $12,443.4 million as of September 30, 2025, from $12,630.4 million at the end of 2024[27] - Insurance reserves increased to $6,123.6 million as of September 30, 2025, compared to $5,811.6 million at December 31, 2024, reflecting a growth of 5.3%[30] - Kemper's total investments decreased to $8,602.6 million as of September 30, 2025, from $8,888.5 million at December 31, 2024[27] - The company's long-term debt remained stable at approximately $943.1 million as of September 30, 2025, compared to $941.7 million at December 31, 2024[30] - Kemper Corporation's shareholders' equity decreased to $2,721.6 million as of September 30, 2025, from $2,784.3 million at the end of 2024[30] Shareholder Actions - Cash dividends paid to shareholders for the three months ended September 30, 2025, amounted to $19.7 million, with a dividend of $0.32 per share, compared to $20.3 million and $0.31 per share in the same period of 2024[38] - The number of common shares outstanding decreased from 64.4 million as of June 30, 2024, to 60.2 million as of September 30, 2025, representing a reduction of approximately 6.5%[39] - The company repurchased common stock totaling $218.8 million during the three months ended September 30, 2025, compared to $25.0 million in the same period of 2024[38] Regulatory and Competitive Environment - The company anticipates continued challenges in the regulatory environment and increased competition affecting future performance[12] - Kemper is focused on integrating acquired businesses and implementing significant operational changes to enhance efficiency and competitiveness[19] Investment Performance - The allowance for credit losses on fixed maturities increased to $15.7 million in 2025 from $10.7 million in 2024[27] - The company reported a comprehensive loss of $227.1 million as of September 30, 2025, compared to a comprehensive loss of $252.5 million as of September 30, 2024, indicating an improvement in overall financial health[39] - The total fixed maturities investments amounted to $4,939.1 million, with unrealized losses of $728.0 million, including $793.8 million in fair value for less than 12 months and $4,145.3 million for 12 months or longer[75] Taxation - For the three months ended September 30, 2025, the income tax benefit was $7.9 million, or 27.3% of income before income taxes, compared to an expense of $18.9 million, or 20.4% for the same period in 2024[186] - The company has no unrecognized tax benefits as of September 30, 2025, and no liabilities for accrued interest and penalties for the nine months ended September 30, 2025[187] Legal and Compliance - The company is involved in legal proceedings but does not believe any pending legal matters will materially affect its financial statements[189] - There have been no material changes to the company's disclosures about market risk since the 2024 Annual Report[316]